Market Trends of Automotive Engine Management System Industry
Passenger Cars Holds Highest Market Share
Passenger cars have become exceptionally popular among consumers due to features like their stylish and compact design and economic value. The rise in the demand for passenger cars is also influenced by the increasing middle-class population and the enhanced standard of living in emerging countries.
The rise in demand for sports utility vehicles (SUVs) creates profitable opportunities for market players as the sale of sports utility vehicles accounts for more than 50% of passenger car sales in India. The demand for sports utility vehicles in countries like India and China surged due to various factors, such as buying preference for bigger cars with high ground clearance.
Furthermore, the increase in demand for electric vehicles due to tax subsidies and expansion in charger infrastructure also resulted in the growth of the market. Electric car sales in India in the first quarter of 2023 were double what they were in the same period in 2022.
According to the International Council of Clean Transportation, the sales of electric vehicles in the United States crossed 1 million. Notably, the sales through the first three quarters of 2023 were about 58% higher than the same period in 2022.
With the growth in the passenger car segment, demand for various engine management systems, such as electronic control units and engine sensors, is expected to continue to grow exponentially in the future. With the ongoing trend of advanced features related to safety and convenience, cars are becoming more feature-loaded. Moreover, the rise in demand for autonomous and electric vehicles is anticipated to create new opportunities for engine management systems.
Companies are also focusing on creating technologically advanced products and expanding their capacity to cater to the high demand in the market. For example, in June 2023, MicroVision Inc., a leader in MEMS-based solid-state automotive lidar and advanced driver-assistance systems (ADAS) solutions, launched its solid-state flash-based MOVIA lidar sensor. The small form factor and light weight of the MOVIA sensor make it appealing for a wide variety of applications.
Asia-Pacific Holds the Highest Market Share
Asia-Pacific is expected to hold a major market share during the forecast period. The regional growth is mainly driven by the top-producing automotive countries like India, China, and Japan.
Other driving factors include the increase in demand for automobiles that provide enhanced driving experiences, comfort, and safety and an increase in demand for fuel-efficient engines. The rise in the sale of electric vehicles has further boosted the use of engine management systems, as countries like India are promoting their adoption through strict regulations, subsidies, tax credits, and other incentives.
- The Ministry of Road Transport and Highways (MoRTH) in India made it mandatory for vehicles to comply with fuel consumption standards from 2023 to make vehicles fuel efficient. The new guidelines on flex-fuel vehicles contribute to the growth of ICE engines.
- China is leading the global market share in the engine management system (EMS) segment, supplying fuel pumps and injectors. New emission norms for diesel engines could mean additional opportunities for Chinese engine management companies.
Apart from conventional IC engine vehicles, the demand for electric vehicles is anticipated to boost the growth of the market. With stringent emission regulations across every region, the demand for electric vehicles is likely to increase during the forecast period. According to the International Council of Clean Transportation, China remained the world’s largest EV market, with approximately 3 million EVs sold in 2023 H1.
- As of January 2024, Chinese manufacturers continue to lead the charge in lidar innovation of autonomous driving technology and have filed a staggering 25,957 patent applications related to lidar since 2000, surpassing American and Japanese companies.
